To Buy or Not to Buy: Travel Insurance

While many people travel, few consider the possibility of travel insurance. At the point where you’ve spend hundreds of dollars on an international plane ticket, it hardly seems necessary or, worse, it may not even be in the budget. For some, travel insurance is an unnecessary expense. For others, it might just be a worthwhile investment. If you’re unsure, take a quick look at our guide and, as Jason Hartman recommends, educate yourself.

Your Risk

First, ask yourself if you are a high risk traveler or if you are traveling to a high risk place. If you’re older and heading to a less developed country, it may be a good bet. If you’re 22 and sleeping on your friend’s couch in Paris, you’ll likely be alright. Also think about the activities you plan to do upon arriving at your destination—skydiving and motorcycles, or restaurants and opera tickets? If you’re the former, consider a travel insurance policy.

Your Options

Many insurance companies offer insurance packages meant to cover all of your travel needs in a handy bundle. If you’re high risk, this might be the easiest and most inexpensive way to go. Otherwise, you may be able to customize your package to include a variety of features. Expect to pay between $80-$150 for a month long trip of medium activity (and likely danger) level.
If you opt for an insurance package, here are a few things it might include:

• Medical: some health insurance companies don’t cover travel abroad, so this will supplement those policies. Medicare participants and citizens of countries with national health services generally need not worry about this.

• Baggage protection: Most airlines offer some sort of baggage protection, but travel insurance companies go a little bit further. If you’re carrying valuable things (like electronics) this just might be worth it. Do remember that your possessions are not covered in the case of silly accidents (like ipods in the toilet) and double check with your credit card company—some offer baggage protection under certain circumstances.

• Actual, physical travel protection: this particular area of insurance offers protection on things like canceled, interrupted, or delayed flights. While the coverage is often partial, it can protect expansive seats and prepaid travel reservations. For the luxury traveler, this is likely worth it.

• Emergency evacuation: If you have to be medically evacuated during your travel, the bill is not going to be cheap. Estimates indicate that you’ll be paying at least $30,000. If you’re traveling somewhere that is relatively desolate or rugged, tack this onto your bill.

Ideally, you’ll be overprotected and you won’t use any part of such a plan. Still, if you suspect you might be at risk, spend the extra cash and save yourself a bit of worry (and perhaps some pricey medical bills.(http://www.flickr.com/photos/_pichenettes_/2338269006/)